NMC scales down revenue projection to Rs 1,500 crore: COVID-19 impact
| Date :07-Aug-2020 |
Staff Reporter
Licence fee for commercial establishments is meant to collate data of business expanse in city for next DP
COVID-19 outbreak is going to hit hard the revenue receipts of Nagpur Municipal Corporation (NMC) and Municipal Commissioner Tukaram Mundhe estimated it may be around Rs. 1500 crores. The pandemic has put pressure on economic activity which in turn impacted GST collection that is now main source of revenue for civic body. Since State Government has already implemented 33 per cent cut, NMC has to depend on internal receipts for meeting its expenditure and clearing liabilities. For the same Estate Department was strengthened, lease agreements were renewed and grievances redressal mechanism streamlined that boosted confidence of tax payers leading to higher clearances.
Mundhe said GST is the main grosser for civic body as the compensation from State Government ensures 50 per cent revenue. Next two important revenue grossers are Property Tax and Water Tax but even if civic body is successful in meeting 100 per cent of target they together brings in only 25 per cent money. As against this the committed expenditure of NMC per month is around Rs. 1100 crores, including salaries.
Therefore this year NMC was forced to undertake a tight rope walk said Mundhe and added this situation is prevalent in entire country, while trying to deflect criticism about stalling development projects in city. Interacting with newspersons on Thursday at Central Office of NMC, Municipal Commissioner said if at all some balance remains after meeting expenditures then the funds is going to used for meeting the liabilities. Commissioner in his budget had pegged total revenue at Rs. 2600 crores but this seems unlikely due to novel coronavrius that has put strain on economy and dwindled revenue collection from GST. Asked about the new directive about licence fee, Mundhe cleared the air saying it is as per provision of Maharashtra Municipal Corporation Act and not meant for city alone.
Till now local body failed to frame bye-laws and the licence fee is not an major revenue source for NMC but it is more of regulation. Since new Development Plan is in making its better civic body know details of business and services operating under its jurisdiction and the mapping is ensured through licence fee for which even on-line format is being made available. On COVID-19 front, society in general need to adapt to new lifestyle and if not coronavirus is going to stay put and inflict maximum damage on polity. Citing several examples of people still fooling around against increasing threat from virus, an exasperated Mundhe said what else does administration needs to do? "Our goal still remains same, minimise the fatality while we can manage spike in cases as NMC is ready with necessary infrastructure", he claimed. However, the behaviour of citizens still a major worry as Commissioner cited instances of people hiding past disease history and even Doctors acting lightly even after showing COVID-19 symptoms.
SSC and HSC students of civic schools to get Tabs: Mundhe Nagpur Municipal Corporation (NMC) has decided to prowess students of civic run schools through information technology and for same decided to provide them tabs. Municipal Commissioner Tukaram Mundhe said Education Department has drafted the proposal to provide tabs to Class X and XII students from this year.
The initiative is aimed at ensuring that students from economically weaker classes who mostly study in civic schools do not lag behind in studies. Mundhe during informal interaction with mediapersons on Thursday disclosed that the item for providing Tabs is listed in the agenda of the general body meeting of NMC. NMC has also initiated on-line studies for all classes at civic schools. Yes there are some issues as to non availability of android phones with students and for the same teachers of civic schools are going to individual homes to teach the students.